engleski

Options hedging

The use of modern futures markets can be considered a basic precondition for the survival of most business. Using future markets instruments can in the first place protect us against the risk of sudden price movements. For the purpose of insurance hedging has been in use for more than a century, but still its forms have evolved over time. On the other hand options can be considered the most sophisticated instrument futures trade can offer at this point. The aim of this paper is to present how options, which are normally considered a main tool for speculation, can successfully be used as a tool for financial risks insurance.

hedging; options; futures markets

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